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The 7 Best Small-Cap Stocks to Buy From Third Avenue

Third Avenue has been busy re-balancing its portfolio of small-cap stocks

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Small-Cap Stocks to Buy: NetScout Systems, Inc. (NTCT)

Small-Cap Stocks to Buy: NetScout Systems, Inc. (NTCT)NetScout Systems, Inc. (NASDAQ:NTCT) operates in the very hot sector of cybersecurity and business intelligence. Their analytics software collects, filters and stores data, then extracts valuable insights for clients. It also protects clients.

Innovation is key here, as NTCT needs to stay ahead of increasingly advanced threats as well as innovating competitors. The company’s progress on the next product cycle is promising, as updated during Q1 earnings. The launch of vSCOUT™, vSTREAM™ and virtual nGeniusONE® (marketed for enterprise, service provider and government customers), enhances the visibility of its nGeniusONE Service Assurance Solution. Its applications can now accommodate more customers since it can run in physical or virtual data centers, private, public or hybrid cloud environments.

Additionally, NTCT’s security unit, Arbor Networks, doubled its Arbor Cloud capacity and will double again by the fiscal year end to better support new nodes in North America, Europe, Asia and South America. More traffic will require this additional capacity that Arbor is preparing for.

While product improvements steadily came online, first-quarter earnings were still disappointing. That said, management reiterated that it expects that the bulk of revenues will come through in the second half of the fiscal year, in keeping with historical trends in the business, and the market should inflect upwards if NTCT delivers.

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